Horse Race and Options Trading

Horse Race and Options Trading

Shriram Garde

Long ago, I used to hear from the elders at my home about someone having lost all the money in horse race. This used to be a major crib in the past and the women impacted always had altercation with so-called her-better-half in vain.  Horse race was (even is) considered a gamble, and man that gambles considered an evil, probably rightly so. Being a small kid in the block, I used to wonder what thrills these men to go for horse races despite being branded as evil-of-the-house and despite losing the bet 9 out of 10 times.  Still this may be the scene in most of the conventional households.

But one thing was pretty clear to me then.  Both the men and the women in my neighbourhood had not had any understanding about the game, i.e., horse race.  And hence it was obvious that both could not convince each other.  Knowledge about such sports were acquired through word-of-mouth, generally, in those times.  Today, we live in an internet age where there is explosion of data and information. Google has replaced the elders at home. So, a quick glance about horse race in google and my acquaintance with few horse-race-loving-friends made me realise horse race is just not a gamble, but a sport that requires one to be strategic in order to emerge a winner in it. I am not talking about the jockey or the owner of the horse, but the players that indulge in horse race betting.

Horse Race, as a sport, involves a proper and calculative approach to betting and winning.  There are several strategies one can adopt depending on his view and risk profile.  It is not a game of fluke, unless played blindly without knowledge about the horse, the jockey, the strategies, the betting mechanism and the variants of this sport. Sure, there is little bit of luck involved but a careful manipulation of the strategy increases the winning probability.

Having said above, I find great similarity between Horse Race and Options Trading. Both are strategic in nature and have to be supported by in-depth knowledge about their key elements. Horse is to horse-race, and Underlying is to Options. The pedigree and the performance of horse and jockey have to be studied before betting on a horse, while the quality and behaviour of an underlying have to be studied in Options. There are several types of bets in an horse betting system, while there are several strategies in an options trading system. A methodical and a calculative approach to the sport helps winning the bet, while a similar approach to Options increases the probability of profit.

So, if the nannies at home consider horse trading as evil then Options also must be given equal status in their minds.  But that is not the case now.  Nannies have adapted to the digital age.  Their knowledge is augmented by the younger generation, and the most elderly person at home – GOOGLE.  A used-to-be-cribber-nanny turned an evangelist, not of horse-race betting but of options trading.

Welcome to the world of Options Trading, a mean to create not just profits, but WEALTH.



About The Author: Shriram Garde

My mission is just to share the events in my life sincerely with you; as I have experienced them, not necessarily in that order. I write on various topics. Whether that means - advice, tips, tools, scriptures, or instructions on budgeting, getting out of debt, making some extra cash, investing or anything else, I intend to provide it. I was 18 years old when I started working as a labourer. I had no savings. I had no money left in my bank accounts. I know life through lot of unpleasant incidences occurring day in and day out. But what I realised is that it doesn't have to be always like that. We are not doomed to how we are currently living – we all can change! I know, because over last couple of years my family and me have paid off a huge amount of debt. I have a passion to help people come to this realisation and get started on their own journey to financial freedom. I had owned 2 Companies before moving to Finance Sector about 9 years back. Spending more than 30 years in various capacities taught me quite a lot. I have a diploma in Engineering completed in part time while I was working. I have learned a good chunk from my working background in various fields. But, like most people who are eager to learn, the bulk of what I have learned thus far is from reading magazines, books, blogs, pod cast or whatever else I can get my hands on about Personal Finance, investing, business, personal development, and time management.

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